For the first time among newly built apartments in Gangnam District, Seoul, the reserved lots of "Cheongdam LEEL," which exceeded 2 billion won per 3.3 square meters, are being put up for bid. The minimum bid price for an 84-square-meter apartment, the so-called "national standard size," is in the 5.9 billion won range. Reserved lots are dwellings that a reconstruction or redevelopment association withholds from sale to prepare for contingencies such as lawsuits.
According to the maintenance industry on the 30th, the Cheongdam Samik Apartment Housing Reconstruction Maintenance Project Association issued a sale notice the previous day for four reserved lots at Cheongdam LEEL. The minimum bid prices for the four 84-square-meter reserved units range from 5.96 billion won to 5.98 billion won. The presale price for an 84-square-meter unit at Cheongdam LEEL was about 2.2 billion to 2.5 billion won, setting the reserved-lot sale prices 3 billion won higher.
The reserved-lot apartments are on the 6th and 7th floors. The association will sell the reserved lots through a highest-bid tender. Bidding runs from today through Jan. 8 next year.
Cheongdam LEEL is an apartment complex with 1,261 households spanning four basement levels to 35 above-ground floors in the Cheongdam-dong area of Gangnam District, Seoul. Built by Lotte Construction, the high-end complex began move-ins on the 10th of last month.
An 84-square-meter move-in right at Cheongdam LEEL sold for 6.5 billion won last month, a record high. The previous sale price was 6.15 billion won (14th floor). Current asking prices for 84-square-meter listings at Cheongdam LEEL range from a low of 5.3 billion won to as high as 7 billion won.
Recently, demand for bidding on reserved lots has dropped sharply. Although bidding is allowed regardless of the number of dwellings owned in land transaction permit zones and buyers can purchase below market price, tighter lending regulations have narrowed funding channels, creating the burden of securing large sums in a short period.
The success of this reserved-lot sale will likely hinge on expectations for Cheongdam LEEL's value appreciation. If buyers judge that home prices will rise further, creating an opportunity to grow their asset, demand is expected to emerge mainly from high-net-worth end users.
In particular, because Cheongdam LEEL's reserved lots are coming to market as Gangnam-area home prices surge, some say the sale could perform better than other apartment reserved lots. With the "one smart home" trend expected to intensify and new apartment supply in Seoul likely to shrink further, demand for reserved lots in well-located new apartments is projected to be substantial.
A licensed realtor said, "Because a national standard size unit in a prime Cheongdam location is coming up for bid, there will likely be demand," adding, "But it will depend on how the market receives the bid prices and whether the units have a Han River view."
However, considering that in the first reserved-lot sale at "Maple Xi" in Seocho District, Seoul, in April, only six of 29 units were awarded, confidence in a blockbuster sale of Cheongdam LEEL's reserved lots may be premature. A real estate industry official said, "Because the bid prices are high, buyers must prepare funds at once, so demand will likely be determined by factors such as the building number of the reserved lot and the floor level."